Region, Sector (1 Line of Text Only)

Greater Kuala Lumpur MarketView Q2 2013 CBRE Global Research and Consulting

GDP NET RETAIL IPI CONSUMER 4.3% (Q2 2013) EXPORTS TRADE 3.7% (Q2 2013) CONFIDENCE

INCREASED ECONOMIC ACTIVITY, DRIVEN BY DOMESTIC CONSUMPTION, DRIVES SECOND QUARTER GDP GROWTH

Quick stats ChartQ2 2013 1: Growth in GDP and Domestic Demand GDP and Q2 y-o-y Domestic Demand: 2013 Real GDP Growth 4.3%  Private Consumption 7.2% 

Public Consumption 11.1% 

CPI 1.8%  Distributive Q2 2013 q-o-q y-o-y Trade:

Wholesale RM109,2   Trade 85 million Retail RM75,69   Trade 9 million Net -41.6%   Exports Exports RM169,4   (Q1) 66 million Source: [Bank Negara Malaysia (BNM)] Imports RM152,9 Malaysia’s economy grew Domestic demand expected to   (Q1) 13 million stronger in Q2 2013 outpace Malaysia’s GDP Monetary and Q2 y-o-y Malaysia’s GDP expanded slightly by Amidst a challenging external Banking: 2013 4.3% (Q1 2013: 4.1%) in the second environment, domestic demand is

Base Lending Rate 6.53%  quarter of the year, but decreased expected to continue being the driver year-on-year (Q2 2012: 5.6%). of Malaysia’s economic growth, with

Loans Approved This is mostly attributable to pre- growth in domestic demand RM31,1 (Residential  projected to outpace overall GDP 87 election government spending and Properties) an increase in economic activity after growth in the second half of 2013. million Exchange Rate the May 2013 polls, although the Domestic demand growth will be RM1.00 to US$ 0.3228  figure was still below economists’ supported by the implementation of (e.o.p.) consensus expectations of 4.9%. projects under the various economic It should be noted that Malaysia’s transformation programmes. In addition, a rise in consumerism and current account surplus fell sharply to RM2.6 billion in the second favourable labour market conditions quarter (Q1 2013: 8.7 billion) mainly are expected to continue supporting due to declining exports and strong consumer spending. imports. The government has since At the same time, escalating levels of announced its intention to take household debt fuelling this demand certain steps, including sequencing raise concerns. Nevertheless, a large investments that have high more encouraging outlook is import content, increasing Malaysia’s provided by positive consumer and competitiveness and diversifying business sentiment. export markets, to reverse this As at June 2013, inflation was stable situation. at 1.8% (May: 1.8%) after an As a result of these external increase from 1.7% in April 2013. concerns, the central bank cut its forecast for full-year growth to 4.5%- 5.0% from 5.0%-6.0%. © 2013, CBRE Malaysia

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Q2 2013 Q22013 OFFICE FLIGHT TO QUALITY CONTINUES

Greater Kuala Lumpur Kuala Lumpur Greater | Continued leasing activity provides encouragement Chart 2: Total Greater KL Supply The Kuala Lumpur City (Golden Triangle + CBD) office market showed encouraging signs of life during the review quarter as vacancy rates decreased to 12.7% (13.2% as at Q1), on the back of some notable leasing activity. Continued evidence of the ongoing flight to quality came in the form of an oil and gas major leasing

over 200,000 sq ft of office space in Integra Tower, the

MarketView recently completed prime office building within MGPA’s Intermark integrated development. Overall, there was no change in average gross asking and passing rents for selected Grade A office space in

the city, at RM8.10 psf and RM7.10 psf respectively.

Long-awaited Shell and CIMB buildings ready Source: CBRE Research As at Q2 2013, the total supply of office space in Greater KL stands at about 91.1 million sq ft, a sizeable change Chart 3: Breakdown of KL Supply by Area from Q1’s 89.2 million sq ft and up 5% y-o-y. The second quarter of 2013 witnessed the completion of 4 developments, all located outside KL City: Menara D’Damansara (253,000 sq ft of NLA), Plaza 33, i.e. the 2nd phase of Jaya 33 (530,840 sq ft), and Menara CIMB (609,000 sq ft) as well as Menara Shell (538,617 sq ft) located in KL Sentral. There were no office completions in KL City during the quarter and none are expected until 2014; overall, large- format, high-quality city-centre office completions between now and 2017, when the first phase of TRX is scheduled to be completed, appear limited. At least 2.53 million square feet of office space (in 9 buildings) will be completed during the second half of 2013. 3 buildings are located in Petaling Jaya (at least 750,000 q ft of NLA), 2 in Shah Alam (475,000 sq ft), and Source: CBRE Research 4 in suburban areas of Kuala Lumpur: Commerce One on Old Klang Road (201,620 sq ft), Menara LGB in TTDI Chart 4: Future Supply by Location (414,119 sq ft), Sentral Vista (250,000 sq ft) and 1 Sentrum (440,000 sq ft) in KL Sentral/Brickfields; hence, supply in suburban areas will represent 50% of all the completed projects in Greater KL over the next 6 months. The significant amount of supply completions in KL Sentral since 2012 has driven up vacancy rates in surburban areas, and we expect that it will take some time for this new supply to be absorbed.

2014 supply to exceed 2013’s Our latest figures show that as much as 6.27 million 2 square feet of new office space will be completed in Greater KL in 2014, although a considerable amount of Source: CBRE Research this supply is located in strata-title or secondary buildings. Nevertheless, the market is set to remain poised in favour of tenants for the near future.

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OFFICE Q22013

INCREASED LEASING ACTIVITY OFFERS ENCOURAGEMENT Greater Kuala Lumpur Kuala Lumpur Greater |

Chart 5: Kuala Lumpur Vacancy Rates Market defined by activity in suburban areas Although vacancy rates increased in suburban areas, those in Outer Klang Valley (i.e. Selangor) showed improvement from 19.4% in Q1 2013 to 17.7% in Q2 2013. Despite this and the earlier-mentioned leasing activity in the city centre, however, the overall Greater KL vacancy rate registered 15.0%, up from 14.4% last

quarter.

MarketView Integra Tower and Menara LGB benefitting from large lettings

Notable city-centre transactions during the quarter included the aforementioned letting in Integra Tower, a move we understand will be phased throughout the rest of the year, as well as the relocation of Fuji Xerox into Menara Binjai, and LHDN taking up 100,000 sq ft in Source: CBRE Research Menara Olympia on Jalan Raja Chulan. The ongoing ‘flight-to-quality’ continues with Deloitte Chart 6: Grade A Passing Rents having announced their move out of Damansara Uptown 1 to relocate to Menara LGB in early 2014. The willingness of large corporate occupiers, especially MNCs, to relocate to newer buildings with higher specifications has been evident since at least 2010, when companies could be seen leaving older buildings along the Jalan Sultan Ismail strip for newer, higher quality completions around the KLCC precinct, such as GTower and Vista Tower.

Malton’s acquisition of Pusat Bandar Damansara land is resolved, as Petaling Jaya’s V Square is included as part of settlement Among the 5 investment transactions recorded during Q2 2013, the most significant involved the disposal of a Source: CBRE Research 20-storey commercial office building identified as Block 1 of V Square, along with 964 car park bays, in Petaling Chart 7: Grade A Capital Values Jaya, sold to Bukit Damansara Development (indirectly owned by Johor Corp.) by Khuan Choo Property Management (a subsidiary of Malton Berhad). This transaction was directly related to the acquisition of 9.6 acres of prime land (plus existing buildings) by IESB, in majority owned by the major shareholder of Malton (Pavilion group), Datuk Desmond Lim. The complex transaction, which has a reported value of RM700 million, consists of RM500 million cash plus 266,667 sq ft of office space within the redeveloped Pusat Bandar Damansara. The transfer of V Square was undertaken in exchange for a portion of this in-kind office space, with the remaining 80,000 sq ft to be transferred once the PBD redevelopment is complete. 3 This resolution brings to an end a three-year legal battle, Source: CBRE Research and we understand the PBD redevelopment will include at least 2 office and 3 residential towers and a suburban retail mall.

(333510P) (VE(1)0232) Q2 2013 Q22013 RETAIL

FOREIGN RETAILERS CONTINUE TO ENTER THE MARKET Greater Kuala Lumpur Kuala Lumpur Greater | Retail Supply Chart 8: Retail Supply The total retail supply in Greater KL remained at 48.33 million sq ft as of 2Q 2013, as there were new completions during the period. Notable malls due to be completed this

year include Cheras Sentral Shopping Centre (developed 60.00 by Mayland Properties), which is approximately 50% let and 50.00 due to open in November this year, Nu Sentral (a MRCB and PNB Joint Venture), about 70% pre-let and due to open 40.00 30.00

end-2013/ early-2014, and Encorp Strand Mall (developed MarketView by Encorp), which was due to open in June but has now 20.00 been pushed back to end-2013.

10.00 Total Total NLA (million ft) sq Looking further ahead, the two largest malls due to come 0.00

onto the market in the near future include IOI City Mall

2007 2008 2009 2010 2011 2012

(1.35 million sq ft) and Empire City Mall (1.8 million sq ft). 2006

2013e 2014e 2015e

The former is reportedly on track to open end-2014, while 1H2013 the latter was due to be completed by end of 2014 but has now been delayed to 2015. Source: CBRE Research

Occupancy and Prime Rents Chart 9: Average Occupancy Rate As at 1H 2013, occupancy rates in city centre malls continued rising, although those in suburban malls declined slightly. The average occupancy rate remained at 91%. 100.0%

Popular malls continue to demonstrate a high level of 95.0% occupancy (circa 95%) whereas malls that are located further away, or not as well designed nor as well managed, 90.0% have lower occupancy rates. 85.0% Prime rents increased by around 2%, with the highest rent 80.0% in the city centre at RM155 psf, and in the suburbs at RM48 75.0% psf. There are also outstanding rent reviews for 2013, and 70.0%

we expect to see further increases in rents.

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

2000 1H2013 In other news City Centre Suburbs Klang Valley Average The iconic British toy store Hamleys announced they will open their first store in Kuala Lumpur in December 2013, Source: CBRE Research following a franchise agreement with a local retailer. Hamleys was founded in London over 250 years ago, and Chart 10: Prime Retail Rental Index has over 30 stores worldwide. They hope to open 6-7 stores in Malaysia and Singapore over the next 10 years.

Malaysia was intermittently affected by the yearly ‘haze’ 300 caused by wildfires in Sumatra. In Paradigm Mall for example, it was reported that there was a slight increase in 250 mall traffic and slightly better sales for F&B outlets. 200 With Malaysia also having held general elections on 5th

May 2013, overall effects on the retail industry of the 150 aforesaid events have yet to be determined.

The overall sentiment is that the market has become more Rental Index (Q4 1995 = 100) 100

4 competitive, and this is reflected in rental levels and

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

increased incentives demanded by retailers (e.g. fit-out 1995 1H2013 contribution). However, South East Asia still remains very lucrative for many retailers based in Europe/USA/Australia, and there has been a steady flow of new-to-market retailers Source: CBRE Research (e.g. H&M) entering the Malaysian Market.

NEW REGULATIONS TO CURB HOUSEHOLD EXPOSURE Greater Kuala Lumpur Kuala Lumpur Greater |

Chart 11: BNM: Residential loan applications & loan approvals

MarketView

Source: [Bank Negara Malaysia (BNM)] Restriction on pre-approved loans On 5th July 2013, The Central bank (BNM) announced a Total loans applied for purchase of residential property set of measures aimed at avoiding excessive household reached record highs at RM112.7 billion in the first 6 indebtedness and to reinforce responsible lending months of 2013, up 16.5% from the corresponding period practices by key credit providers. These measures, which of 2012. This was mainly due to the surge in applications take effect immediately, are: during the months of March-June 2013, when the RM20 a) Maximum tenure of 10 years for financing extended billion mark was breached monthly, with the exception of for personal use; May 2013. b) Maximum tenure of 35 years for financing granted Loan approval rates also recorded an all-time high of for the purchase of residential and non-residential RM55.2 billion during the same period, an increase of properties; 21.9% from 1H 2012. However, banks continue to remain cautious on residential mortgages approvals, with c) Prohibition on the offering of pre-approved personal approval rates registering 49% for the first quarter of financing products. 2013, albeit a slight improvement from 47% during the However, the limits on financing tenure will not affect same period in 2012. applications made before 5th July 2013. Developers launched a number of new projects in Kuala On 11th July 2013, BNM maintained the Overnight Policy Lumpur during the first six months of 2013, especially Rate (OPR) at 3.00% during its MPC Meeting. This has during the later stages of the period. These projects resulted in BLR remaining at 6.60%, with a typical combine for a total of over 3,200 units and include mortgage rate of BLR minus 2.2%-2.4%. prominent developments such as The Horizon In the Monetary Policy Statement, BNM has indicated Residences (Jalan Tun Razak), RuMa Hotel & that domestic demand is expected to continue to support Residences (Jalan Kia Peng, KLCC), Four Seasons economic growth amid a continued moderation in Place (Jalan Ampang, KLCC), The Mews Serviced external demand. However, the sustained weakness in Residences (Jalan Yap Kwan Seng KLCC), Pavilion the external environment may affect overall growth Hilltops (Mont’Kiara), TTDI Ascencia (Taman Tun Dr. momentum. Going forward, private consumption is Ismail) and others. Most of these new launches recorded 5 expected to remain steady, underpinned by income strong take-up rates, and it appears some pricing growth and stable labour market conditions. Capital benchmarks may be tested, with the Four Seasons Place expenditure in domestic-oriented industries and the in KLCC priced at an average RM2,750psf and Pavilion ongoing implementation of infrastructure projects will also Hilltop in Mont’Kiara reportedly reaching prices of support investment activity. RM1,000psf.

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Q2 2013 Q22013 HOUSING

HOUSING MARKET SET FOR PERIOD OF MODERATION Greater Kuala Lumpur Kuala Lumpur Greater | Limited growth in new supply Chart 12: Greater KL residential supply The total existing supply of residential properties in Greater Kuala Lumpur stood at about 1.77 million units as at end-Q2 2013, with landed residential properties accounting for 43.5% of the total stock, followed by non- landed properties at 34.9% and low-cost housing at 21.6%.

Supply growth since end-2012 has been minimal (less

MarketView than 1.0%), part of a wider slowdown in supply growth seen since 2006; we partly attribute the growth in capital values seen in many areas of Greater Kuala Lumpur since 2009 to this decline in new starts. Although the numbers of new starts have rebounded since 2011, they

remain below the level seen during 2003 – 2007.

Scarcity of development land About 75.7% of all the residential units in Greater Kuala Lumpur are located in Selangor, with the remaining LC = Low-cost; p = Preliminary 24.0% and 0.3% located in Kuala Lumpur and Putrajaya Source: [Department of Valuation, Ministry of Finance] respectively. Putrajaya, the country’s administrative capital, accounts for just over 4,740 units which are Chart 13: Incoming supply primarily for the housing of civil servants. Kuala Lumpur and its suburbs have grown at a rapid pace, causing development land to become scarce and in turn driving up capital values for many areas in Selangor. New residential developments are being located further and further away from the city centre, with an increasing level of development seen in the southern portion of Greater KL, forming a growth corridor linking the city with Putrajaya/Cyberjaya and down to KLIA. Previously overlooked areas such as Semenyih, where SP Setia have recently launched a project and where Sime Darby and Country Garden own large tracts of land, are poised to see a marked increase in development activity in the near future.

Nearly all incoming units are in construction Source: [Department of Valuation, Ministry of Finance] stage As of Q2 2013, a total of 196,092 units were classified as incoming supply, defined as units for which construction Chart 14: 2012 Average transaction value permits have been approved (whether or not construction has begun). The breakdown of the units by location is more or less similar to the existing Greater KL unit distribution. 186,581 units are deemed to be under construction, implying that construction works have begun on 95.1% of the units with construction permits. This increase in new starts suggests that the overall Greater KL housing market is now poised for a period of stabilisation, with the period of significant growth in 6 capital values seen since 2009 being replaced by an era of more gradual increases.

Source: [Department of Valuation, Ministry of Finance]

(333510P) (VE(1)0232) CONDOMINIUM Q22013

MORE HIGH-END CONDOMINIUMS IN THE PIPELINE Greater Kuala Lumpur Kuala Lumpur Greater |

Chart 15: High-end condominium supply Increase in luxury high-rise developments Of the 42,979 units of high-rise developments (condominiums and serviced residences) in Kuala Lumpur valued at or above RM500 psf, about 35% are considered to be ‘luxury’ (valued at RM800 psf and above). While the majority of new launches are in suburban

areas, there are also a number of upcoming new

developments in the KLCC vicinity, including projects MarketView such as KL Trillion Serviced Apartments and Verve Suites @ KLCC among others. The Mont’Kiara vicinity is also seeing an increase in new launches, with projects

such as Pavilion Hilltop, Residensi 22 @ Mont’Kiara, Sun

Kiara Condominium, Kiara 163 Serviced Residence, Weida Mont’Kiara and others due to be launched in the near future. During the review period, there were two new Source: [CBRE Research] completions in Mont’Kiara, i.e. Kiaramas Danai (287 units) and 28 Mont’Kiara (460 units). It is estimated that as many as 6,484 units of high-end condominiums will be Chart 16: Average capital values completed in Kuala Lumpur during 2H 2013.

Improvement in secondary market activity Activity in the secondary market remained moderate during 1H 2013 and this trend is expected to continue throughout 2H 2013. We have seen a slight increase in the average price for secondary transactions of condominiums in the areas of KLCC, Bangsar, and Mont’Kiara (up 2.18% q-o-q to RM785psf during the review quarter), primarily in older schemes in Bangsar as well as Mont’Kiara, although activity appears to have picked up in KLCC as well, with investors returning in search of opportunities. With ongoing speculation that BNM may curb developers’ ability to offer certain incentives such as DIBS (developer interest bearing scheme), it will be interesting to see what effect this has on the secondary market, assuming that Source: [CBRE Research] primary sales activity slows as a result. We believe that such a restriction should spur sales of secondary units to some degree, although the overall effect should not be Chart 17: Asking rental rates significant.

Rental rates remain flat The rental market remained weak, although the rental rate stayed firm at about RM3.32psf per month q-o-q. We are seeing lower asking rents for some developments in the study area, especially for larger units facing increased rental competition from newer, more reasonably (smaller) sized units. Average asking rents in KLCC are about RM3.80psf per month, while those in Bangsar and Mont’Kiara are 7 RM3.25psf per month and RM2.90psf per month, respectively.

Source: [CBRE Research]

(333510P) (VE(1)0232) Q2 2013 Q22013 HOTEL

WOLO, PULLMAN AND OTHERS NEARING COMPLETION Greater Kuala Lumpur Kuala Lumpur Greater | Increased tourist arrivals Table 18: KL hotel snapshot Q2 2013 Incentives announced during the 2013 budget appear to have borne fruit as tourist arrivals rose by 15.9% y-o-y, 5-star 4-star 3-star from 5.6 million for the period of January to March 2012 Total supply (units) 12,479 7,988 6,454 to 6.5 million for the same period in 2013. To recap, the tourism sector has been allocated RM358 million (USD New supply (units) - - - $111.9 million) within the framework of ‘Visit Malaysia Occupancy rates 75.1% 66.9% 60.8%

2013/2014’ and is expected to attract 26.8 million tourists (%)

MarketView by 2014. Q-o-q change (pts) 190 pp (17 pp) 373 pp Other incentives announced include a three-year income Y-o-y change (pts) 723 pp (460 pp) (51 pp) tax exemption for local tourist operators who handle Average room 354 236 119

more than 1,500 domestic or 750 foreign tourists rates (RM / night)

annually. Q-o-q change (%) 0.0% 1.7% (12.5%) Y-o-y change (%) (1.3%) 1.3% (1.7%) Steady incoming hotel supply Source: [JPPH / MIHR / CBRE Research] As at Q2 2013, the total supply of 3- to 5-star hotel rooms in Kuala Lumpur remained at 26,921 keys, unchanged from the previous quarter. Chart 19: 3-5-star hotel supply & occupancy Completions in the immediate future include the 3-star Supply (JPPH) Occupancy 168-room Wolo Hotel, the 5-star 513-room Pullman 35,000 80.00% Kuala Lumpur Bangsar Hotel and 354-room hotel suites 30,000 75.00% 70.00% within The One @ Bukit Ceylon development. These 25,000 1,035 rooms are expected to be completed by end-2013, 65.00% 20,000 increasing the hotel supply by 3.8%. 60.00% 15,000

Moving forward, 2014 will see expected completions of 55.00% O ccupancy (%) O ccupancy Supply (Rooms) Supply 10,000 1,299 rooms, equivalent to 4.6% supply growth, spread 50.00% across 5 properties. Notable completions include the 5- 5,000 45.00%

star 160-key St Regis Hotel which will also house 48 - 40.00% serviced apartment suites (as well as branded residences for sale), along with the 4-star, 203-room Holiday Villa Kuala Lumpur located along Jalan Mayang Source: [JPPH / MIHR / CBRE Research] within KL City Centre.

Opportunities in affordable segments The hotel sector remained healthy during Q2 2013, with Chart 20: 3-5-star hotels (ARRs) average occupancy rates for 5-star hotels increasing by 723 bp from 67.8% in Q2 2012 to 75.1% in Q2 2013. 5-star 4-star 3-star Occupancy rates for 3-star hotels also increased y-o-y 400

from 57.1% in Q2 2012 to 60.8% in Q2 2013, although 4- 350

star hotels saw a slight decrease in occupancy rates. 300

Average room rates (ARR) for 3-, 4- and 5-star properties 250

were RM119 (USD $37), RM236 (USD $74) and RM354 200

(USD $111) respectively, with an average room rate (RM) ARR 150

across all three segments of RM263 during Q2 2013. 100

Encouragingly, although 4-star occupancy rates declined 50

slightly, ARR for this segment improved by 1.7% q-o-q. 0 8 Given the cost associated with building new luxury properties, we believe the 3- and 4-star segments offer better prospects, especially as the number of modern Source: [MIHR / CBRE Research] internationally-branded 3- and 4-star properties in the city centre is limited.

(333510P) (VE(1)0232) SERVICED APARTMENT Q22013

ASCOTT SENTRAL DUE TO BE COMPLETED IN 2H 2013 Greater Kuala Lumpur Kuala Lumpur Greater |

Table 21: KL serviced apartment (SA) snapshot Steady serviced apartment growth As of Q2 2013, the supply of serviced apartments in Kuala Lumpur remained unchanged at 5,889 units in 33 q-o-q y-o-y change change serviced apartment developments. Q2 2013 (%) (%) The two serviced apartment developments which are Total supply (units) 5,889 0.0% 6.1% expected to be completed by year-end are still on track. This will add a further 307 units (+5.2% of total stock) to

Average 71.1% 6.8% 0.2%

the market. These developments are the Lanson Place MarketView occupancy rates (%) Bukit Ceylon (150 units) and the Ascott Sentral Kuala Lumpur (157 units), which should be completed in Q3 Average room 281 (1.1%) 2.1% and Q4 2013 respectively. rates (RM / night)

We continue to receive queries from serviced apartment RevPAR (RM / 200 5.7% 2.3% night) operators eager to increase their Malaysian portfolios, Source: [MIHR / CBRE Research] and we expect to see more such developments in the near future. In particular, some midtown/ suburban areas, such as Damansara Heights, Bangsar and Mont’Kiara, where existing supply is quite limited, appear to be of interest to major operators. Chart 22: SA supply & occupancy Robust serviced apartment performance Supply of SA Occupancy Rate 9,000 78.0% Average occupancy rates for serviced apartments was 8,000 76.0% recorded at 71.1% during the quarter, representing a 7,000 74.0% increase of 6.8% compared to 66.6% in the previous 6,000 72.0% 5,000 70.0% quarter. 4,000 68.0% Average room rates (ARRs) saw a slight decrease from 3,000 66.0% 2,000 64.0% RM284 to RM281. 1,000 62.0% (%) Rates O ccupancy - 60.0% We note that, this performance came despite General

Serviced Apartment Supply (Rooms) Supply Apartment Serviced Elections being held during the review period, resulting in a moderate decline in commercial activity.

Source: [MIHR / CBRE Research] Hospitality Sector Outlook Generally, the Kuala Lumpur hospitality market continued to be resilient during the second quarter of 2013, driven by increased tourist arrivals, as the overall performance Chart 23: SA ARR and RevPAR of the hotel and serviced apartment sectors remained

ARR REVPAR stable compared to the previous quarter. RM400 With much of the concern about political uncertainty that RM350 have been present for the past year seemingly resolved, RM300 it remains to be seen what impact this has on tourist RM250 arrivals and business activity. A number of prominent RM200 developments are due for completion over the next 12

Rates Rates (RM) RM150 months, and the performance of these properties, plus RM100 their impact on existing stock, will have to be monitored RM50 closely. RM0 2007 2008 2009 2010 2011 2012 Q1 Q2 2013 2013 9 Source: [MIHR / CBRE Research]

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Q2 2013 Q22013 CONTACTS Greater Kuala Lumpur Kuala Lumpur Greater | For more information about this Kuala Lumpur MarketView, please contact:

Nabeel Hussain Fong Kean Hwa Lek Chay Tong Associate Director Vice President Assistant Vice President Research & Consultancy Residential Research Retail Research Level 9, Menara Millennium Level 9, Menara Millennium Level 9, Menara Millennium Jalan Damanlela, Bukit Damansara Jalan Damanlela, Bukit Damansara Jalan Damanlela, Bukit Damansara

50480 Kuala Lumpur, Malaysia 50480 Kuala Lumpur, Malaysia 50480 Kuala Lumpur, Malaysia MarketView t: +603 2092 5955 ext 126 t: +603 2092 5955 ext 162 t: +603 2092 5955 ext 134 e: [email protected] e: [email protected] e: [email protected]

Julien Hives Ridhwan Radzi Nur Hamizah Assistant Vice President Senior Research Executive Research Executive Office Research Hospitality Research Economic Research Level 9, Menara Millennium Level 9, Menara Millennium Level 9, Menara Millennium Jalan Damanlela, Bukit Damansara Jalan Damanlela, Bukit Damansara Jalan Damanlela, Bukit Damansara 50480 Kuala Lumpur, Malaysia 50480 Kuala Lumpur, Malaysia 50480 Kuala Lumpur, Malaysia t: +603 2092 5955 ext 156 t: +603 2092 5955 ext 134 t: +603 2092 5955 ext 147 e: [email protected] e: [email protected] e: [email protected]

Global Research and Consulting This report was prepared by the CBRE Malaysia Research Team which forms part of CBRE Global Research and Consulting – a network of preeminent researchers and consultants who collaborate to provide real estate market research, econometric forecasting and consulting solutions to real estate investors and occupiers around the globe.

Disclaimer © 2013, CB Richard Ellis (Malaysia) Sdn Bhd. Information herein has been obtained from sources believed reliable. 10 While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the market. This information is designed exclusively for use by CBRE clients, and cannot be reproduced without prior written permission of CBRE.

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